Ruffer has posted a healthy rise across assets, revenues and profits despite a tough year for some of its managers.
Ruffer enjoyed a 14% increase in assets under management to £15.5 billion over the year to the end of March. The group has since hit £16.1 billion of assets, of which over £7 billion is held in open-ended funds.
This growth boosted Ruffer’s turnover for the period by 11% from £132 million to £146 million and its operating profit by 6% from £108 million to £115 million.
Profit was impacted by slightly higher administrative expenses, though, which climbed by 29% to £31 million. Underlying this were a number of new hires, as headcount swelled from 112 to 119 and the wage bill jumped by 30% to £13 million.
Performance in some of Ruffer’s key funds, however, has suffered recently due to an emphasis on assets such as cash, gold and government bonds. Ruffer’s giant £2.8 billion Total Return fund, for example, has slipped into its sector’s bottom quartile over the past three years. The Ruffer investment trust too has lagged, returning 11.7% over the past year compared with an average of 20% from its Global Growth peer group.
In contrast Ruffer’s Japanese fund, managed by Citywire AAA-rated Kentaro Nishida (pictured), has continued to impress. Its 60% return over the past three years places it third in its sector of 66 for the period.